30 January 2013
One of our employee who has joined in December 2012 was earlier working in Dubai for three months. He has not paid any tax there as there is no tax in Dubai on Individuals. Now he is a resident in India. Should I deduct tax on his income earned in Dubai because for residents world income is taxable? or is it not taxable because of DTAA
30 January 2013
If the employee has declared by submitting Form 16 or Form 12B for his income from previous employment, then TDS is to be deducted as per section 192 of IT Act.
It is an obligation on the part of every employer to ask the employees to declare their income of previous employment details However it is not mandatory on the part of employee to declare the same to present employer.
If not declared, no question of TDS obligation on present employer.